ISIS parks its cash in Bitcoin, experts say
Just days after the hacker group Anonymous pledged to hunt down Islamic State members and launch cyberattacks against their accounts, a separate group of techies claims it has identified a key funding avenue for the terror network – bitcoin accounts.
Ghost Security Group, a collective of computer “hacktivists,” says it has located several bitcoin accounts that ISIS uses to fund operations. One account contained $3 million worth of bitcoin, a GhostSec member told Michael S. Smith II, a co-founder of Kronos Advisory, a national security advisory firm.
Ghost Security Group “wants to make an impact in counterterrorism,” Smith said, adding that the GhostSec member reached out to him because government officials were not paying close attention to the allegations.
Related: Has Anonymous's war against ISIS been doing more harm than good?
Smith said U.S. counterterrorism officials are concerned that ISIS is acquiring gold and using numerous financial tools, including bitcoin, to tap into markets. A Treasury Department spokesperson said the agency couldn’t comment on accounts allegedly linked to terrorists unless the department has taken public action.
But bitcoin – an unregulated form of online currency that circumvents the traditional banking system – is on the government’s radar, since it could serve as an ideal placeholder for terrorist assets and provide a way for terrorists to exchange money. The bitcoin website, bitcoin.org, describes the ease with which anyone can send and receive virtual funds:
“Sending bitcoins across borders is as easy as sending them across the street. There are no banks to make you wait three business days, no extra fees for making an international transfer, and no special limitations on the minimum or maximum amount you can send.”
Bitcoin is considered the first worldwide, decentralized currency; it can be sent from person to person without the third-party involvement of a financial institution. Bitcoin accounts are set up with virtual money, but the digital funds can be cashed in for real money or goods.
ISIS parks its cash in Bitcoin, experts sayJust days after the hacker group Anonymous pledged to hunt down Islamic State members and launch cyberattacks against their accounts, a separate group of techies claims it has identified a key funding avenue for the terror network – bitcoin accounts.Ghost Security Group, a collective of computer “hacktivists,” says it has located several bitcoin accounts that ISIS uses to fund operations. One account contained $3 million worth of bitcoin, a GhostSec member told Michael S. Smith II, a co-founder of Kronos Advisory, a national security advisory firm.Ghost Security Group “wants to make an impact in counterterrorism,” Smith said, adding that the GhostSec member reached out to him because government officials were not paying close attention to the allegations.Related: Has Anonymous's war against ISIS been doing more harm than good?Smith said U.S. counterterrorism officials are concerned that ISIS is acquiring gold and using numerous financial tools, including bitcoin, to tap into markets. A Treasury Department spokesperson said the agency couldn’t comment on accounts allegedly linked to terrorists unless the department has taken public action.But bitcoin – an unregulated form of online currency that circumvents the traditional banking system – is on the government’s radar, since it could serve as an ideal placeholder for terrorist assets and provide a way for terrorists to exchange money. The bitcoin website, bitcoin.org, describes the ease with which anyone can send and receive virtual funds:“Sending bitcoins across borders is as easy as sending them across the street. There are no banks to make you wait three business days, no extra fees for making an international transfer, and no special limitations on the minimum or maximum amount you can send.”Bitcoin is considered the first worldwide, decentralized currency; it can be sent from person to person without the third-party involvement of a financial institution. Bitcoin accounts are set up with virtual money, but the digital funds can be cashed in for real money or goods.
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